Companies Are Scaling Back Sustainability Pledges. Here’s What They Should Do Instead.

Between 2023 and 2024, many companies retreated from their sustainability commitments. This HBR article can help you understand why this lapse in commitment is shortsighted and how to get back on track. The author, Kenneth Pucker, explains the common financial and political factors responsible for this rollback and outlines how companies can move forward. This involves replacing unrealistic targets with meaningful actions; rethinking supplier relationships to account for impacts that primarily occur outside of a company's direct control; applying internal carbon pricing to better reflect true costs of activities and investments; and reshaping governance structures to ensure accountability and expertise in sustainability initiatives. This resource will benefit both business leaders and sustainability practitioners.